By Mc Donald Chapalapata, a Contributor

National Bank of Malawi (NBM) plc has partnered with Malawi Housing Corporation (MHC) to collect payments from its clients on the bank’s digital platforms.

NBM plc Head of Digital Financial Services, William Kaunda, said in an interview yesterday that apart from collecting different payments over the counter, the bank will also be collecting the payments on its digital platforms starting with its Mo626ice mobile banking platform before adding the internet banking platform Banknet360 and Mo626 Digital+.

“We want to make it easy for customers of both institutions to make payments using our digital channels so that we decongest our banking halls and also considering that we are still in the Covid-19 pandemic, it will be safer for people to make these payments using these digital channels,” said Kaunda.

MHC Public Relations Officer, Ernestina Lunguzi, said making payments through the Mo626ice platform will provide a convenient mode of remitting bills and other payments on the part of their customers as well as improving revenue collection and reconciliation.

“Our customers will avoid bank queues and travel distances but will also save time. This is also coming in the wake of the Corporation being sensitive to Covid-19 prevention measures. It will also propel debtors to pay quickly for services,” said Lunguzi.

Explaining the process flow of the payments, Kaunda said after a customer has dialed *626# on their mobile phone, they will be asked to select their preferred account and enter their PIN after which they should go to the ‘make payment’ service option where they can select Malawi Housing Corporation.

Kaunda said that for first time users, prior to making a payment, the customer is required to register their MHC Debtor ID on the Mo626ice platform. To do this, once the customer has logged in to Mo626ice, the customer is required to select the option to register their MHC Debtor ID and proceed to input the Debtor ID which starts with “SRG” followed by numbers.  

He said that after successfully registering the Debtor ID, the customer can then initiate payment by selecting MHC payments under the Make Payments menu within the platform.

Customers can make payments towards Ground Rent, Hostel Rent, House Application Fee, House Rent, and many more.

Two of Malawi’s mobile companies, Airtel and TNM have announced their profits and dividends to their shareholders with Airtel externalizing about K23 billion while TNM will be investing in rural masses.

Airtel made a whopping K32 billion in profits for last year and will pay its shareholders K23 billion, the biggest chunk of it going to the majority shareholder Bharti Airtel with 80% shareholding while a paltry 20% is held by local shareholders. 

On the other hand, TNM made a profit of K7.7 billion after tax, a decline by 41% from the previous year of K13.2 billion and declared a dividend of K4 billion to its shareholders. All TNM shareholders are local with conglomerate Press Corporation plc holding the majority shareholding of 41.31%.

While Airtel will be externalizing the profits through the dividends, TNM plc plans to continue investing the money in the country through its newly launched ‘Mudzi Wathu’ initiative which the company will give back to the communities for development totaling to almost K1 billion of the accruing annual revenue.

An economic analyst who did not want to be named said the country needs to review shareholding of multi-national companies in relation to externalization of money meant for development of the country.

“We need to come up with a deliberate policy on the shareholding of these multi-national companies. For example, 20 % local shareholding in Airtel Malawi is too little. Look at the profits that Airtel has made, they will externalize 80% of the K23 billion profit through payment of dividends, it is Malawi that will suffer in the end. ” he said.

“Look what TNM has done. It is using the profits made by investing in rural communities for development projects; now imagine if the money that Airtel was going to externalize was used for local development in rural areas, this country would be developed. It is time we stand up and fight for our resources,” he added.

By Mc Donald Chapalapata, a Contributor

Press Corporation plc Friday held its Annual General Meeting (AGM) where it declared a total dividend of K3.7 billion to its shareholders in respect to profits for the year ending 31 December 2020.

Addressing the meeting which was earlier planned to be hybrid in Lilongwe but was later changed to virtual because of the new Covid-19 measures, PCL Board Chairman Randson Mwadiwa said the conglomerate delivered a satisfactory performance despite a challenging operating environment in 2020 due to the effects of the Covid-19 pandemic.

“Turnover from operations at K219.5 billion in 2020 was level with prior year. The Group also achieved significant successes in controlling costs which are similar to last year’s despite the additional unplanned expenditures incurred in fighting the pandemic. Profit after tax for the year at K19.9 billion is 13% lower compared to K22.9 billion recorded in prior year,” said Mwadiwa.

The conglomerate then declared a final dividend of K3 billion representing K25 per share in respect of 2020 profits following the payment of an interim dividend amounting to K721.2 million representing K6 per share in October 2020 brining the total dividend for the year to K3.72 billion representing K31 per share.

Mwadiwa said the focus for most the PCL group companies was to ensure continued normal operations through the pandemic turbulence saying emphasis was placed on the activation of the various business continuity plans, preservation of cash, employee and customer safety, managing the new paradigm shift of working from home with the associated digital technology, and the strengthening of business relationships.

“Most Group companies have demonstrated remarkable flexibility and professionalism on how they adjusted their strategies to suit the new operating environment. With the availability of Covid-19 vaccines, we envisage improved economic prospects for 2021 and delivery of planned and significantly improved results,” said Mwadiwa.

He however noted that prevailing foreign exchange shortages are likely to persist and this together with the significant increase in public debt, poses a downside risk to the business environment.

 Mwadiwa also informed the shareholders on the new investments that PCL and one of its subsidiaries National Bank of Malawi (NBM) plc have embarked on.

“In line with our strategic plan, the Group resuscitated its expansion drive programme. During the year, PCL extended its footprint in the financial services sector by partnering with Equity Investments Limited and Fidelity Limited to register a new company called LifeCo Holdings Limited, a life insurance, pensions and asset management business. The Group owns 49.5% of the business and the company started operations in January 2021.”

“National Bank of Malawi (NBM) plc, our subsidiary, also acquired a controlling stake in Akiba Bank, a potentially high growth bank in Tanzania as part of the overall Group growth strategy for the region,” said Mwadiwa.

He assured shareholders that drawing from the lessons of the challenges encountered in 2020, PCL has developed a capacity to absorb key anticipated risks within its risk appetite framework to ensure sustainable business growth.

“The Group will continue to emphasize on efficiency improvements, capital adequacy and restructuring measures in some segments that have been diagnosed to be undercapitalized,” said Mwadiwa.

PCL, listed on the Malawi Stock Exchange (MSE) is a highly diversified conglomerate with interests in different sectors of the Malawi economy including financial services, telecommunications, food and beverage, energy and consumer goods.

Malawi’s pioneer mobile and ICT services provider TNM plc invested over MK31.5 billion in infrastructure during the year 2020 as part of its ongoing effort of developing a sustainable business in line with the company’s vision to be aligned with the global trends in digital transformation.

Addressing a virtual Annual General Meeting (AGM) for TNM last week, TNM plc Board Chairman George Partridge said TNM plc will continue to transform its business by pioneering innovations that will transform the telecommunications sector in the country.

“Being pioneers of mobile telecommunications in this country since 1996, we take our role in innovations very seriously. I am glad to be part of this important phase of development in this industry that will contribute immensely to the development of individuals, businesses and the Malawi economy at large,” said Partridge.

He also told the shareholders of the company that in 2020, TNM created wealth amounting to MK53.3 billion.

“We shared MK36.9 billion to our stakeholders, with the greatest portion being MK10.6 billion given to the Government through levies and taxes. Our employees got MK9.9 billion of the value that TNM had created in the year,” said Partridge.

Partridge also told the shareholders that TNM’s Corporate Social Responsibility (CSR) focus areas continue to be in the areas of health, education and support for vulnerable groups saying the mobile company has contributed immensely through the traditional donations as well as providing connectivity to these important areas.

“TNM has contributed significantly towards the fight against the COVID-19 pandemic in Malawi especially in the education and health sectors. TNM provided ICT equipment and connectivity solutions to the education sector to allow for continued access to education when physical teaching and learning was not possible.”

“TNM also contributed over MK150 million to the health sector to allow them access personal protective equipment (PPE), allow health personnel in the four central hospitals in Blantyre, Lilongwe, Mzuzu and Zomba to access connectivity for health surveillance as well as support for COVID-19 related issues. Our company continues to sponsor the TNM Super League which contributes enormously to the development of the most popular sport in Malawi, football,” said Partridge.

He said they are looking ahead with great optimism and courage noting that the telecoms penetration in Malawi at 48% is still low compared to the regional markets where penetration is greater than 90%.

“The smartphone penetration is also very low but growing at a rate of more than 240% since 2018. We still have over 55% of Malawi’s adult population which does not have access to financial services of any kind. This means that the potential for growth of our business is still enormous. With investments that we are putting in infrastructure development and continuous improvement of our business, we expect successful years ahead,” he said.

In 2021, Partridge observed, the macro-economic environment is expected to remain challenging, putting pressure on service revenue and margins.

“The volatile exchange rates and foreign currency scarcity will continue to increase the cost of our operations. The adverse effects of the coronavirus pandemic that started in 2020 are expected to continue in 2021. However, the vaccination programs that have been rolled out are expected to provide a good base for economic activity and hence economic recovery”.

“We anticipate that there will be a surplus in the maize harvest, resulting in food security and providing our rural consumers surplus disposable income to spend on our services. We will continue to focus our attention on meeting and exceeding customer expectations by delivering outstanding customer experiences,” said Partridge.

Responding to a question from a shareholder on the declining of dividends that the company will declare to its shareholders, Partridge said the board was fully aware that the dividend growth between 2019 and 2020 declined and has been below inflation.

“The dividend growth dropped in real terms due to the decline in net profits available for distribution. The dividend policy of your company is to pay out between 40% – 60% of the distributable profits for that year.”

“The policy was framed that way to ensure that the company is able to invest in capital expenditure for future growth as well as it replaces old equipment and systems which may become obsolete due to advancement in technology,” said Partridge.

The Board of Directors of FDH Bank plc has appointed George Chitera as Acting Managing Director of the bank following the retirement of Managing Director Dr Ellias Ngalande on 30 June 2021.

In a statement, FDH Bank plc Board Chairperson Charity Mseka said Chitera’s appointment is effective from 1 July 2021.

“The Board of Directors would like to extend a huge vote of appreciation to Dr. Ngalande for his enormous contribution to the growth and success of FDH Bank Plc which include leading and guiding the Bank to list on the Malawi Stock Exchange on 3 August 2020. The Bank wishes Dr. Ngalande a restful and prosperous retirement,” said Mseka in the statement.

Until his appointment, Chitera was serving as FDH Bank Plc Deputy Managing Director. He previously also served as Acting Group Chief Executive Officer and Chief Finance Officer for FDH Financial Holdings and FDH Bank Plc.

 Chitera joined FDH Financial Holdings in 2007 and has over 17 years extensive professional experience in leadership, business development, strategy formulation, corporate finance, financial planning and analysis, strategic planning, banking, risk management, capital allocation, debt structuring, treasury and tax planning.

“Mr. Chitera has been a key member of Management in the Group and before joining the Group, he worked with Reserve Bank of Malawi for 3 years and has served on the Boards of Lilongwe Shopping Mall and Women’s Legal Resource Centre. Currently he serves on the Boards of Medical Aid Society of Malawi (MASM), Mwaiwathu Private Hospital, First Discount House Limited, FDH Money Bureau Limited and MSB Properties Limited,” said Mseka.

 Chitera is a Fellow of the Association of Chartered Certified Accountants (FCCA), a member of the Institute of Chartered Accountants in Malawi (ICAM) and holds a Master of Business Administration Degree from the Polytechnic, University of Malawi. He is a graduate of the Executive Development Program from the prestigious London Business School, United Kingdom and University of Stellenbosch Business School, South Africa.

“We congratulate Mr. Chitera on his well-deserved appointment and wish him well as he takes up this challenging role,” said Mseka.

Malawi’s pioneer mobile and ICT services provider TNM plc Thursday successfully concluded a three-month long Tikolore Promotion where it unveiled 30 millionaires.

‘Tikolore promotion’ which is a celebration for the harvest season was launched on 1^st April 2021 in Lilongwe and a Lilongwe based Estate Agent Francis Mtukanika became the first millionaire after winning K1 million during a draw conducted by Minister of Youth and Sports Ulemu Msungama.

Speaking at the close of the promotion in Lilongwe, TNM Chief Marketing Officer Frank Magombo described the promotion as a ‘success’ saying they have managed to celebrate the harvest season with their customers through the promotion.

“Tikolore Promotion was about appreciating our customers for choosing TNM as their communications and digital services provider. TNM being the truest son of the soil decided to celebrate the bumper harvest with our customers through this promotion which has been a success,” said Magombo.

He said the promotion has changed people’s lives.

“We are happy that we have changed people’s lives, we are hearing moving stories from the winners about how their lives have changed after winning in Tikolore Promotion. Others have built houses, bought land, boosted their businesses, paid school fees, paid hospital bills and many more because of this promotion, this makes us feel proud,” said Magombo.

He said the promotion also created opportunities where every customer, as long as he or she recharged their phone with as little as K200 of airtime, had a chance of winning.

“It is possible! NdiZotheka! If you see those who won K1 million cash prizes, they are from different backgrounds, others are teachers, students, business persons, nurses and ordinary individuals which means that this promotion created opportunities for everyone. Again, we were able to get a millionaire from each of Malawi’s 28 districts,” said Magombo.

Magombo said apart from the cash winners, everyone else was also a winner as with as little as K100 recharges, everyone was getting bonuses in airtime, SMS and data.

“At TNM plc, our purpose is connecting society, creating possibilities, and changing lives. We are happy that we do this every day and we have just shown this during this promotion. We want to thank our customers for supporting the TNM brand,” said Magombo.

At the end of the promotion, apart from unveiling the 30 millionaires, a total of 3,000 customers won a total K30 million with 250 customers winning K10,000 every week for 12 weeks and 150 customers won K15 million with 50 lucky customers winning K100,000 every month.

During the final draw in Lilongwe, some winners had doubts when TNM Products Manager Tiyamike Tizifa called them that they had won the K1 million prize.

“Achimwene there are a lot of fraudsters, get that money it is yours,” said Harold Manyowa from Chiradzulu before cutting the line.

But when the money was loaded into his Mpamba account, Manyowa was all praises for TNM.

“Thank you I have received the money, thank TNM! I will continue supporting TNM, I will be buying more units for my phone, thank you TNM,” he said after being called again to verify that it was a genuine transaction.

Another winner, Potiphar Banda, a sugarcane Cutter from Dwangwa was all over the moon after the money was loaded into his Mpamba account declaring that he is quitting his job immediately.

“Thank you TNM, I will continue supporting TNM. In fact, I am quitting my job as a Sugarcane cutter, I was getting only K20,000 per month now I have K1 million which I will use prudently, but I quit my job today!” said Banda.

Another winner Patuma Jackson from Machinga could not be reached as her phone was off.

There were seven millionaires who were unveiled on the last day of the promotion throughout the regions.

…to be unveiled Thursday July 1

FDH Bank Plc has concluded negotiations with the Football Association of Malawi (FAM) on the continued sponsorship of the country’s football team, the Flames.

The details of the new sponsorship deal will be unveiled on Thursday in Blantyre, both FDH and FAM officials have confirmed.

FDH Bank plc Head of Marketing and Communication Levie Nkunika said they will be renewing the contract, which dates back to 2016 when the bank started bankrolling the Flames with an annual sponsorship of K30 million.

“FDH Bank is committed to work together with FAM to realize the full potential of Malawi Football. Our Bank stands for making growth possible for our customers and stakeholders including communities under which football development falls. The Bank supports the vision of FAM to make the Flames Africa’s football powerhouse.”

“The Bank has taken a medium- and long-term view to the development of sports especially football and netball in Malawi as it has been investing not only in the Queens and The Flames but has also introduced national cups for both netball and football – the FDH Bank Cup for football and the FDH Bank Cup for netball. This is in addition to the mayors’ trophies and inter-city Mayors’ trophy for netball and football for primary schools,” said Nkunika.

FAM Secretary General Alfred Gunda also confirmed the new deal saying all the finer details of the ‘new and improved sponsorship’ will be unveiled on Thursday.

“It is true that we have been having talks for a possibility of reviewing the sponsorship of the Flames and we will be announcing the new deal with big improvements on Thursday. We would like to commend FDH Bank for always standing with us,” said Gunda.

FDH Bank started sponsoring the Flames in 2016 with K30 million annually when all sponsors had deserted the team as most of them sought immediate returns.

The Bank raised the sponsorship by doubling it to K 60 million in 2019. Currently FDH pumps K60 million (K180 million for 3 years) for the Flames annually and K360 million annually for the FAM FDH Bank Football Cup being the most lucrative football cup in Malawi with the winning team taking home K25 million as prize money.   

From the month of April, every Friday FDH Group staff members don Flames Jerseys in what is called ‘FDH Flames Friday’ as a symbol of national pride and celebrating the Flames AFCON qualification.

As part of celebrating the Flames AFCON qualification and promoting a savings culture among the customers, FDH Bank is running a savings promotion campaign called ‘Wamkaka Promotion’ with prizes that include Flames Replica Jerseys monthly and a grand prize of K5 million that will close in August 2021. 

Following the Flames victory over Uganda and qualification for AFCON 2022, FDH Bank plc spoiled the Flames with a K100, 000.00 investment account to 35 squad players translating to K3,500,000.00.

“The Bank has taken interest to support the Flames players to build and develop sustainable livelihoods post their careers by conducting savings and investment training to the squad members and this has not been done in Malawi before,” said Nkunika.

FDH Bank is a home-grown bank with the widest branch network of 51 service centres in Malawi and is a subsidiary of a fast-growing diversified financial group, FDH Financial Holdings Limited that includes FDH Money Bureau and the First Discount House among others.